The output level of a firm is gien by Q = 50√LK Assume that the firm has orders for 1000 units of output. The price of labor is given N$5 per unit and the price of capital is N$20 per unit. Using the Lagrangian, 1 find the cost-minimizing combination of inputs 2 find the value of λ and interprete. 3 Calculate the total cost, Average total cost

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter4: Polynomial And Rational Functions
Section4.6: Variation
Problem 2E
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The output level of a firm is gien by Q = 50√LK

Assume that the firm has orders for 1000 units of output.

The price of labor is given N$5 per unit and the price of capital is N$20 per unit.

Using the Lagrangian,

1 find the cost-minimizing combination of inputs

2 find the value of λ and interprete.

3 Calculate the total cost, Average total cost

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